State Capitol News

5:06 pm

Wed January 11, 2012

Gov. Brewer Lays Out Business Tax Cut Plan

Governor Jan Brewer laid out a package of new tax cuts for business today that she wants lawmakers to enact this session.

Brewer pushed through a massive package of tax cuts last session that, when fully implemented, have a price tag of more than $500 million. It includes slicing corporate income taxes by nearly 30 percent and a 10 percent cut in business property taxes.

The new plan includes reducing taxes on capital gains, increasing the amount of equipment not subject to property taxes and allowing businesses more time to use current losses to reduce future taxable profits. Brewer gave only a cursory answer to a question of enacting more tax cuts now even before the others have taken effect.

While brushing past reporters she said, "I think it's a plan, moving into the future, that sets up the state for success."

Gubernatorial press aide Matthew Benson said, "The governor believes that these are a few areas, small areas, where we can make strategic changes in the tax code and further incentivize business growth and investment, without blowing a hole in the budget. Last year's economic competiveness package took a pretty wide swath. And these are some very strategic things that we can build onto that.)

Benson said he cannot say how much these new proposals would take out of state revenues.